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INTRODUCTION
Monopoly is an economic situation in which only a single seller or producer supplies a commodity or a service. For a monopoly to be effective there must be no practical substitutes for the product or service sold, and no serious threat of the entry of a competitor into the market. This enables the seller to control the price.
One or more of the following elements are of great importance in establishing a monopoly in a particular industry:
(1) Control of a major resource necessary to produce a product, as was the case with bauxite in the pre-World War II aluminum industry.
(2) Technological capabilities that allow a single firm to produce at reasonable prices all the output of a particular commodity or service, a situation sometimes described as a "natural" monopoly;
(3) Exclusive control over a patent on a product or on the processes used to produce the product.
(4) A Government franchise that awards a company the sole right to produce a commodity or service in a......

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Approximate Word Count: 1996
Approximate Pages: 8 (250 words per double-spaced page)

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